1. Which of the following statements regarding fair presentation and compliance with

generally accepted accounting principles is false?

I. The application of PFRSs, with additional disclosures when necessary, is

presumed to result in financial statements that achieve fair presentation

II. An entity whose financial statements comply with PFRSs shall make an explicit

and unreserved statement of such compliance in the notes

III. Inappropriate accounting treatment may be rectified either by disclosure of

accounting policies or by notes or explanatory material

A. Statement III

B. Statement I, II and III

C. Statement I and II

D. Statetement I

2. Financial statements achieved fair presentation when

A. All of the above

B.Inappropriate accounting treatments are corrected or rectified through disclosures

C.The PFRS issued by FRSC are appropriately applied, with additional disclosures when

necessary

D. They comply with majority of the requirements of each applicable PFRS and each applicable

interpretations

3. Which of the following statement is (are) true?

I. When preparing financial statements, management is required to make an

assessment of an enterprises ability to continue as a going concern which should be

at least five years from the balance sheet date

II. When the financial statements are not prepared on a going concern basis,

this fact should be disclosed

A. Neither nor I and II

B. I and II

C. I only

D. II only

4. The following relates to materiality and aggregation, except

A. Specific disclosure requirement in a Standard need not be satisfied if the information is not

material.

B.Each financial statement item should be presented separately in the financial statements.

C.Items of dissimilar nature or function shall be presented separately.

D. Immaterial amounts should be aggregated with amounts of similar nature or function and

need not be presented separately.

5.Which are the following are the acceptable methods for reporting comprehensive

income for the period

I. One statement of comprehensive income

II. Two statements; an income statement and a statement of comprehensive income

III. In the statement of owners equity

A. I and II only

B. I and III

C. I, II and III

D. I only